Insurance Accounts Regulations 1980 - Bermuda Laws Laws/Insurance... · 2020-05-03 · INSURANCE...

FA E R NAT F

TQUO U

BERMUDA

INSURANCE ACCOUNTS REGULATIONS 1980

BR 18 / 1980

[made by the Minister of Finance under the Insurance Act 1978 and brought into operation on 1 January1980]

TABLE OF CONTENTS

CitationInterpretationStatutory financial statementsBalance sheet and statement of income for general businessBalance sheet and statement of income for long-term businessBalance sheet and statement of income for compositesBalance sheet and statement of income for Special Purpose Insurers [revoked]Statement of capital and surplus for all insurersNotes to statutory financial statementsInstructions relating to statutory financial statementsRequirements relating to preparation of accounts generallyOffencesCommencement [omitted]

SCHEDULE IPRESCRIBED FORMS OF STATUTORY FINANCIAL STATEMENTS

SCHEDULE IINOTES TO STATUTORY FINANCIAL STATEMENTS

SCHEDULE IIIINSTRUCTIONS AFFECTING THE STATUTORY BALANCE SHEET

SCHEDULE IVINSTRUCTIONS AFFECTING THE STATUTORY STATEMENT OF INCOME

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1


SCHEDULE VInstructions affecting the statutory statement of capital and surplus

[NB References to “Registrar” replaced throughout by references to “Supervisor” by 2001:27 s.4 effective1 October 2001; references to “Supervisor” replaced throughout by references to “Authority”, andconsequential appropriate grammatical changes made, by 2001:33 s.5 effective 1 January 2002. Theseamendments are not individually noted in each place in which they occur.]

CitationThese Regulations may be cited as the Insurance Accounts Regulations 1980.

InterpretationIn these Regulations, except where the context otherwise requires, the following

expressions have the meanings hereby respectively assigned to them, that is to say—

“account” includes any of the statements specified in regulation 3(2), and any noteor other document annexed or attached to any such statement;

“the Act” means the Insurance Act 1978;

“affiliate”, in relation to an insurer, means a body forming part of a group with thatinsurer;

“association” has the meaning assigned thereto in the definition of “group”;

“composite” means an insurer which in the relevant year carried on both generalbusiness and long-term business;

“fair value determined in good faith”, in relation to an investment held by aninsurer, means the value of that investment, being the value that in the opinionof the directors, exercising good faith, that investment would realize on a saleor other disposition of that investment within a reasonable period of time;

“Form” means any Form in Schedule I;

“funds held by ceding reinsurers” means funds held by ceding reinsurers under theterms of contracts of insurance;

“group” means any two or more bodies, whether corporate or unincorporate, thatare in association, and two bodies shall for the purposes of these Regulationsbe deemed to be in association if one of them has control of the other or bothare under the control of the same person or persons;

“independent”, in relation to an appraisal, means that the appraisal is made by aperson who—

makes such appraisals in the ordinary course of his business; and

is not financially interested in any way in the business of the person whoseproperty is being appraised, apart from the appraisal;

1

2

(a)

(b)

2


“insurance” has the same meaning as the expression “insurance business” has inthe Act;

“liability insurance business” means the business of effecting and carrying outcontracts of insurance against risks of the persons insured incurring liabilitiesto third parties;

“non-admitted”, in relation to an asset, means an asset or portion of an asset thatis not allowed by these Regulations to be taken into account in preparing thestatutory balance sheet;

“policy” or “policy of insurance” means any contract of insurance (including anycontract to pay an annuity on human life), whether or not there is in being anyinstrument in writing evidencing the contract;

“policy loan” means a loan made to a policyholder by an insurer carrying on long-term business on the security of the cash surrender value of the policyholder’spolicy of insurance;

“policy reserve” means the amount by which the present value of any benefits dueunder a policy of insurance exceeds the present value of the net premiumspayable under the policy;

“products liability insurance” means liability insurance business where the risks,the subject of the contract of insurance, are risks of the persons insuredincurring liabilities in relation to the manufacture or sale by them of, or someother dealing by them in, products that are, or may be claimed to be, in somerespect defective;

“professional liability insurance” means liability insurance business where therisks, the subject of the contract of insurance, are risks of the persons insuredincurring liabilities in relation to the negligent or other exercise by thosepersons of some professional skill;

“quoted”—

in relation to an investment, means an investment as respects which therehas been granted a quotation or permission to deal on a stock exchange inBermuda recognized by the Authority for the purposes of the Act, or on anystock exchange or over-the-counter market of repute outside Bermuda;and

in relation to the value of an investment, means the market value of thatinvestment, being the value listed on such an exchange or over-the-countermarket as aforesaid on the last day of the relevant year,

and “unquoted” shall have a corresponding meaning, so, however, that anyinvestment by all insurer in an affiliate shall not for any purpose of theseRegulations be taken to be either a quoted or an unquoted investment;

“regulations” means regulations made under section 53 of the Act;

“relevant year” has the meaning assigned thereto in paragraph (3) of regulation 3;

(a)

(b)

3


“retrocessional contract” means a reinsurance contract whereby one reinsurertransfers all or part of the reinsurance risk that it has assumed or will assumeto another reinsurer.

“section 24(6) composite” means an insurer to which section 24 of the Act does notapply by reason of subsection (6) of that section;

“statutory financial statements” has the meaning assigned thereto in paragraph (2)of regulation 3:

“unearned premiums” means the amount set aside as at the end of an insurer’sfinancial year out of premiums in respect of risks to be borne by the insurerafter the end of that year, and calculated pro rata, under contracts of insuranceentered into before the end of that year.

[Regulation 2 amended by 2001:27 effective 1 October 2001; “loss reserve specialist” deleted by BR41/2005 effective 1 July 2005; “retrocessional contract” inserted by BR 1/2009 reg.3 effective 31December 2008]

Statutory financial statementsExcept as provided otherwise in other rules the duties of every insurer in

relation to the preparation of statutory financial statements within the meaning of section15 of the Act shall be those prescribed in these Regulations.

The said statutory financial statements consist of—

a statutory balance sheet;

a statutory statement of income;

a statutory statement of capital and surplus.

[revoked]

Every Class 1, Class 2, Class 3, Class A, Class B insurer and innovative insurershall have the duty to prepare in accordance with the requirements of these Regulations,in respect of its insurance business for each financial year, the statutory financialstatements specified in sub-paragraphs (a) to (c) of paragraph (2), and the financial year inrelation to which any particular set of financial statements have been, or are to be, preparedis in these Regulations referred to as “the relevant year”.

[Regulation 3 paragraphs (1) and (3) amended by 2015 : 50 s. 15 effective 1 January 2016; paragraph(2)(d) revoked by BR 41 / 2017 reg. 2 effective 22 April 2017; Regulation 3 paragraph (3) amended by2018 : 35 Sch & s. 22 effective 23 July 2018]

Balance sheet and statement of income for general businessThe statutory balance sheet and the statutory statement of income of a Class

1, Class 2, Class 3 Insurer or innovative insurer which in the financial year carried on noinsurance business other than general business shall respectively be in the forms set outin Forms 1A and 2A.

[revoked]

3 (1)

(2)

(a)

(b)

(c)

(d)

(3)

4 (1)

(1A)

4


[revoked]

[revoked]

[Regulation 4 amended by BR 1/2009 reg.4 effective 31 December 2008; amended by BR 93 / 2010reg.2 effective 31 December 2010; amended by 2011 : 44 Sch. 1 effective 31 December 2011; amendedby 2015 : 50 s. 15 effective 1 January 2016; paragraph (1) amended and paragraphs (2) and (3) revokedby BR 41 / 2017 reg. 3 effective 22 April 2017; Regulation 4 paragraph (1) amended by 2018 : 35 Sch& s. 22 effective 23 July 2018]

Balance sheet and statement of income for long-term businessThe statutory balance sheet and the statutory statement of income of a Class A,

Class B insurer or ILT insurer which in the relevant year carried on no insurance businessother than long-term business shall respectively be in the forms set out in Forms 4 and 5.

[Regulation 5 amended by 2015 : 50 s. 15 effective 1 January 2016; Regulation 5 amended by 2018 : 35Sch & s. 22 effective 23 July 2018]

Balance sheet and statement of income for compositesSubject to paragraph (3)—

the statutory balance sheet;

the statutory statement of income; and

where the case requires, the statutory open year business revenuestatement,

of every composite shall, in respect of its general business, respectively be in the formscalled for by regulation 4.

Subject to paragraph (3), the statutory balance sheet and the statutorystatement of income of every composite shall, in respect of the composite’s long-termbusiness, respectively be in the forms called for by regulation 5.

Subject to paragraph (4), the requirements of paragraphs (1) and (2) shall notapply in relation to any section 24(6) composite, but instead—

the statutory balance sheet and the statutory statement of income of asection 24(6) composite shall respectively be in the forms set out in Forms1A, 2A, 4 and 5.

[revoked]

A section 24(6) composite may, if it thinks fit, comply with the requirements ofparagraphs (1) and (2) voluntarily, and any section 24(6) composite which complies withthose requirements need not comply with the requirements of paragraph (3).

[Regulation 6 paragraph (3)(a) amended and paragraph (3)(b) revoked by BR 41 / 2017 reg. 4 effective22 April 2017]

(2)

(3)

5

6 (1)

(a)

(b)

(c)

(2)

(3)

(a)

(b)

(4)

5


Balance sheet and statement of income for Special Purpose Insurers[Revoked by 2019 : 51 s. 4]

[Regulation 6A revoked by 2019 : 51 s. 4(1) effective 30 April 2020]

Statement of capital and surplus for all insurersThe statutory statement of capital and surplus of every insurer shall be in the form

set out in Form 8.

Notes to statutory financial statementsEvery Class 1, Class 2, Class 3, Class A, Class B insurer and innovative insurer

shall set forth in a general note to its statutory financial statements the matters called forin Part I of Schedule II.

[revoked]

Every Class 1, Class 2, Class 3, Class A, Class B insurer and innovative insurer,and section 24(6) composite shall also set forth—

in notes to its statutory balance sheet the matters called for in Part V ofSchedule II; and

in notes to its statutory statement of income the matters called for in PartVI of Schedule II; and

in notes to its statutory capital and surplus the matters called for in PartIV of Schedule II.

[Regulation 8 amended by BR 1/2009 reg.6 effective 31 December 2008; amended by BR 93 / 2010reg.3 effective 31 December 2010; amended by 2011 : 44 Sch. 1 effective 31 December 2011; amendedby 2015 : 50 s. 15 effective 1 January 2016; Regulation 8 amended by 2018 : 35 Sch & s. 22 effective23 July 2018; Regulation 8 paragraph 3 amended by 2019 : 51 s. 4(1) effective 30 April 2020]

Instructions relating to statutory financial statementsEvery Class 1, Class 2, Class 3, Class A, Class B insurer and innovative insurer

shall comply with the following provisions of this regulation (being provisions containinginstructions affecting the preparation of the several statutory financial statements).

In the preparation of the statutory balance sheet the instructions set forth inthe several Parts of Schedule III shall have effect in accordance with the following rules, thatis to say—

[revoked]

[revoked]

every insurer to whom subparagraph (e) applies which in the relevant yearcarried on no insurance business other than long-term business shall, inaddition to complying with the instructions in Part IV, comply with theinstructions in Part III;

6A

7

8 (1)

(2)

(3)

(a)

(b)

(c)

9 (1)

(2)

(a)

(b)

(c)

6


every section 24(6) composite shall, in addition to complying with theinstructions in Part IV, comply with the instructions in Part III;

every Class 1, Class 2, Class 3, Class A, Class B insurer and innovativeinsurer, and section 24(6) composite shall comply with the instructions inPart IV.

In the preparation of the statutory statement of income the instructions setforth in the several Parts of Schedule IV shall have effect in accordance with the followingrules, that is to say—

[revoked]

[revoked]

every insurer to whom subparagraph (e) applies which in the relevant yearcarried on no insurance business other than long-term business shall, inaddition to complying with the instructions in Part IV, comply with theinstructions in Part III;

every section 24(6) composite shall—

in addition to complying with the instructions in Part IV, comply withthe instructions in Part III.

[revoked]

every Class 1, Class 2, Class 3, Class A, Class B insurer and innovativeinsurer, and section 24(6) composite, shall comply with the instructions inPart IV.

In preparing its statutory statement of capital and surplus every insurer shallcomply with the instructions in Schedule V.

If any instruction in Schedule III, IV or V requires any amount to be shown orany information to be given in a line of a Form in Schedule I, that amount or informationmust be shown or given on that line notwithstanding that that line or that Form may notcontain any express direction or indication where the amount or information is to be shownor given.

[Regulation 9 amended by 1995:20 effective 29 April 1995; amended by BR 1/2009 reg.7 effective 31December 2008; amended by BR 93 / 2010 reg.4 effective 31 December 2010; amended by 2011 : 44Sch. 1 effective 31 December 2011; amended by 2015 : 50 s. 15 effective 1 January 2016; paragraph (3)(d)(ii) revoked by BR 41 / 2017 reg. 6 effective 22 April 2017; Regulation 9 amended by 2018 : 35 Sch &s. 22 effective 23 July 2018; Regulation 9 amended by 2019 : 51 s. 4(1) effective 30 April 2020]

Requirements relating to preparation of accounts generallyAll accounts shall be prepared in the English language.

All amounts which for any purposes of these Regulations are to be shown inany account of any insurer shall be shown in a single currency, and that currency shall bethe currency in which the books and records of the insurer are kept in the insurer’sprincipal office in Bermuda or, where different books and records are kept in different

(d)

(e)

(3)

(a)

(b)

(c)

(d)

(i)

(ii)

(e)

(4)

(5)

10 (1)

(2)

7


currencies in that office, then the currency in which the majority of those books and recordsare kept:

Provided that where the Authority pursuant to the power given to it by section 17(1)of the Act directs the production to it of statutory financial statements, and amounts inthose statements are shown in a foreign currency. those amounts must be converted intotheir Bermudian equivalent before the said statements are so produced.

For the purposes of paragraph (2), the Bermudian equivalent of an amount ina foreign currency shall be the Bermudian dollar equivalent of that amount as convertedinto Bermudian dollars at the rate of exchange used by any licensed Bank in Bermuda inrelation to purchases by that Bank of that foreign currency on the last day of the relevantyear.

For all items shown in any account of any insurer (other than a statutory openyear business revenue statement) there shall be shown the corresponding amounts for theimmediately preceding financial year.

[Regulation 10 paragraph (2) amended by BR 93 / 2010 reg.5 effective 31 December 2010]

OffencesAny person who—

fails to comply with any duty or prohibition imposed upon him by theseRegulations; or

in or in relation to any account makes, or joins in making, any statementwhich he knows to be false or does not believe to be true,

shall be guilty of an offence against these Regulations.

In sub-paragraph (b) of paragraph (1), the expression “make a statement”includes, in relation to any statement made, a wilful omission to state something that ismaterial.

Commencement[omitted]

(3)

(4)

11 (1)

(a)

(b)

(2)

12

8


SCHEDULE I

(Regs. 2, 4, 5, 6, 7)

PRESCRIBED FORMS OF STATUTORY FINANCIAL STATEMENTS

Form 1[Form 1 revoked by 2015 : 50 s. 15 effective 1 January 2016]

Form 1A (Reg 4)

STATUTORY BALANCE SHEET(General Business – Class 1, Class 2, Class 3 insurer or IGB insurer)

[blank] name of Company

as at [blank] (day/month/year)

expressed in [blank] (currency used (vide Reg. 10(2)))

ASSETS

STMT.LINE No.

20XX 20XX

1. CASH AND TIME DEPOSITS XXX XXX2. QUOTED INVESTMENTS: (a) Bonds and Debentures (i) Held to maturity XXX XXX (ii) Other XXX XXX (b) Total Bonds and Debentures XXX XXX (c) Equities 50 (i) Common stocks XXX XXX (ii) Preferred stocks XXX XXX (iii) Mutual funds XXX XXX (d) Total equity investments XXX XXX (e) Other quoted investments XXX XXX (f) Total quoted investments XXX XXX3. UNQUOTED INVESTMENTS: (a) Bonds and Debentures (i) Held to maturity XXX XXX (ii) Other XXX XXX (b) Total Bonds and Debentures XXX XXX (c) Equities (i) Common stocks XXX XXX (ii) Preferred stocks XXX XXX (iii) Mutual funds XXX XXX (d) Total equity investments XXX XXX (e) Other unquoted investments XXX XXX (f) Total unquoted investments XXX XXX4. INVESTMENTS IN AND ADVANCES TO

AFFILIATES (EQUITY METHOD):

9


(a) Unregulated entities that conductancillary services

XXX XXX

(b) Unregulated non-financial operatingentities

XXX XXX

(c) Unregulated financial operating entities XXX XXX (d) Regulated non-insurance financial

operating entitiesXXX XXX

(e) Regulated insurance financial operatingentities

XXX XXX

(f) Total investments in affiliates (equitymethod)

XXX XXX

(g) Advances to affiliatesXXX XXX

(h) Total investments in and advances toaffiliates (equity method)

XXX XXX

5. INVESTMENTS IN MORTGAGE LOANS ONREAL ESTATE:

(a) First lienes XXX XXX (b) Other than first liens XXX XXX (c) Total investment in mortgage loans on

real estateXXX XXX

7. REAL ESTATE:: (a) Occupied by the company (less

encumbrances)XXX XXX

(b) Other properties (less encumbrances) XXX XXX (c) Total real estate XXX XXX8. COLLATERAL LOANS: XXX XXX9. INVESTMENT INCOME DUE AND

ACCRUED:XXX XXX

10. ACCOUNTS AND PREMIUMSRECEIVABLE:

(a) In course of collection XXX XXX (b) Deferred – not yet due XXX XXX (c) Receivables from retrocessional

contracts XXX XXX (d) Total accounts and premiums receivable

XXX XXX11. REINSURANCE BALANCES RECEIVABLE (a) Foreign affiliates XXX XXX (b) Domestic affiliates XXX XXX (c) Pools & associations XXX XXX (d) All other insurers XXX XXX (e) Total reinsurance balances receivable XXX XXX12. FUNDS HELD BY CEDING REINSURERS: (a) Affiliates XXX XXX (b) Non-affiliated XXX XXX (c) Total funds held by ceding reinsurers XXX XXX

10


13. SUNDRY ASSETS:: (a) Derivative instruments XXX XXX (b) Segregated accounts companies XXX XXX (c) Deposit assets XXX XXX (d) ___________ XXX XXX (e) Total sundry assets XXX XXX14. LETTERS OF CREDIT, GUARANTEES AND

OTHER INSTRUMENTS:

(a) Letters of credit XXX XXX (b) Guarantees XXX XXX (c) Other instruments XXX XXX (d) Total letters of credit, guarantees and

other instrumentsXXX XXX

15. TOTAL: XXX XXX

GENERAL BUSINESS INSURANCE RESERVES, OTHER LIABILITIES ANDSTATUTORY CAPITAL AND SURPLUS

STMT.LINE No.

20XX 20XX

INSURANCE RESERVES16. UNEARNED PREMIUMS 17. LOSS AND LOSS EXPENSE PROVISIONS (a) Gross loss and loss expense provisions XXX XXX (b) Less: Reinsurance recoverable balance XXX XXX (i) Foreign affiliates XXX XXX (ii) Domestic affiliates XXX XXX (iii) Pools & associations XXX XXX (iv) All other insurers XXX XXX (c) Total reinsurance recoverable balance XXX XXX (d) Net loss and loss expense provisions XXX XXX18. OTHER INSURANCE RESERVES—

GENERAL BUSINESSXXX XXX

19. TOTAL GENERAL BUSINESS—INSURANCE RESERVES

XXX XXX

OTHER LIABILITIES28. INSURANCE AND REINSURANCE

BALANCES PAYABLEXXX XXX

29. COMMISSIONS, EXPENSES, FEES ANDTAXES PAYABLE

XXX XXX

30. LOANS AND NOTES PAYABLE XXX XXX31. (a) INCOME TAXES PAYABLE XXX XXX (b) DEFERRED INCOME TAXES XXX XXX32. AMOUNTS DUE TO AFFILIATES XXX XXX33. ACCOUNTS PAYABLE AND ACCRUED

LIABILITIESXXX XXX

34. FUNDS HELD UNDER REINSURANCECONTRACTS

XXX XXX

11


(a) Affiliated XXX XXX (b) Non-affiliated XXX XXX (c) Total funds held under reinsurance

contractsXXX XXX

35. DIVIDENDS PAYABLE XXX XXX36. SUNDRY LIABILITIES: (a) Derivative instruments XXX XXX (b) Segregated accounts companies XXX XXX (c) Deposit liabilities XXX XXX (d) ___________ XXX XXX (e) Total sundry liabilities XXX XXX37. LETTERS OF CREDIT, GUARANTEES AND

OTHER INSTRUMENTS

(a) Letters of credit XXX XXX (b) Guarantees XXX XXX (c) Other instruments XXX XXX (d) Total letters of credit, guarantees and

other instrumentsXXX XXX

38. TOTAL OTHER LIABILITIES XXX XXX39. TOTAL GENERAL BUSINESS INSURANCE

RESERVES AND OTHER LIABILITIESXXX XXX

STATUTORY CAPITAL AND SURPLUS40. TOTAL STATUTORY CAPITAL AND

SURPLUSXXX XXX

41. TOTAL

Form 2[Form 2 revoked by 2015 : 50 s. 15 effective 1 January 2016]

Form 2A (Reg 4)

STATUTORY STATEMENT OF INCOME(General Business – Class 1, Class 2, Class 3 insurer or IGB insurer)




STMT.LINE No.

20XX 20XX

UNDERWRITING INCOME1. GROSS PREMIUMS WRITTEN (a) Direct gross premiums written XXX XXX (b) Assumed gross premiums written XXX XXX (c) TOTAL GROSS PREMIUMS WRITTEN XXX XXX2. REINSURANCE PREMIUMS CEDED XXX XXX

12


3. NET PREMIUMS WRITTEN XXX XXX4. INCREASE (DECREASE) IN UNEARNED

PREMIUMSXXX XXX

5. NET PREMIUMS EARNED XXX XXX6. OTHER INSURANCE INCOME XXX XXX7. XXX XXX

UNDERWRITING EXPENSES8. NET LOSSES INCURRED AND NET LOSS

EXPENSES INCURRED XXX XXX9. COMMISSIONS AND BROKERAGE XXX XXX

OTHER UNDERWRITING EXPENSES10. GENERAL AND ADMINISTRATIVE XXX XXX11. PERSONNEL COSTS XXX XXX12. OTHER XXX XXX13. XXX XXX14 UNDERWRITING PROFIT (LOSS) XXX XXX15. TRANSFERRED FROM (TO) OPEN

YEARBUSINESS REVENUE STATEMENTXXX XXX

16 NET UNDERWRITING PROFIT (LOSS) XXX XXX17 GENERAL BUSINESS INVESTMENT

INCOME—NET XXX XXX18. INCOME BEFORE THE UNDERNOTED

ITEMSXXX XXX

37. OTHER INCOME (DEDUCTIONS) XXX XXX38. INCOME BEFORE TAXES XXX XXX39. INCOME TAXES (IF APPLICABLE): (a) Current XXX XXX (b) Deferred XXX XXX (c) Total XXX XXX40. INCOME BEFORE REALIZED GAINS

(LOSSES)XXX XXX

41. REALIZED GAINS (LOSSES) XXX XXX42. NET INCOME XXX XXX

Form 3[Form 3 revoked by BR 41 / 2017 reg. 7 effective 22 April 2017]

Form 4

STATUTORY BALANCE SHEET (Long-term Business)




13


ASSETSSTMT.LINE No. 20XX 20XX 1. CASH AND TIME DEPOSITS XXX XXX

2.QUOTED INVESTMENTS:

Bonds and Debentures

(a) Bonds and debentures(i) Held to maturity XXX XXX(ii) Other XXX XXX(b) Total bonds and debentures XXX XXX(c) Equities(i) Common stocks XXX XXX

(ii) Preferred stocks XXX XXX(iii) Mutual funds XXX XXX(d) Total equity investments XXX XXX(e) Other quoted investments XXX XXX(f) Total quoted Investments XXX XXX

3. UNQUOTED INVESTMENTS:

Bonds and Debentures(a) Bonds and debentures(i) Held to maturity XXX XXX

(ii) Other XXX XXX(b) Total bonds and debentures XXX XXX(c) Equities

(i) Common stocks XXX XXX(ii) Preferred stocks XXX XXX(iii) Mutual funds XXX XXX(d) Total equity investments XXX XXX(e) Other quoted investments XXX XXX(f) Total quoted investments XXX XXX

4. INVESTMENTS IN AND ADVANCES TOAFFILIATES:

14


(a) Unregulated entities that conduct ancillaryservices(b) Unregulated non-financial operating entities(c) Unregulated financial operating entities(d) Regulated non-insurance financial operatingentities(e) Regulated insurance financial operatingentities(f) Total investments in affiliates (equity method)(g) Advances to affiliates(h) Total investments in and advances to affiliates(equity method)

5. INVESTMENTS IN MORTGAGE LOANS ON REALESTATE:

(a) First liens XXX XXX(b) Other than first liens XXX XXX(c) Total investment in mortgage loans on realestate XXX XXX

6. POLICY LOANS 7. REAL ESTATE: XXX XXX

(a) Occupied by the company (less encumbrances) XXX XXX(b) Other properties (less encumbrances) XXX XXX(c) Total real estate XXX XXX

8. COLLATERAL LOANS XXX XXX 9. INVESTMENT INCOME DUE AND ACCRUED XXX XXX 10. ACCOUNTS AND PREMIUMS RECEIVABLE

(a) In course of collection XXX XXX(b) Deferred - not yet due XXX XXX(c) Receivables from retrocessional contracts XXX XXX(d) Total accounts and premiums receivable XXX XXX

11. REINSURANCE BALANCES RECEIVABLE (a) Foreign affiliates XXX XXX

(b) Domestic affiliates XXX XXX(c) Pools and associations XXX XXX(d) All other insurers XXX XXX

15


(e) Total reinsurance balances receivable XXX XXX

12. FUNDS HELD BY CEDING REINSURERS XXX XXX

(a) Affiliated XXX XXX(b) Non-affiliated XXX XXX(c) Total funds held by ceding reinsurers XXX XXX

13. SUNDRY ASSETS:

(a) Derivative instruments XXX XXX

(b) Segregated accounts companies-variableannuities XXX

XXX(c) Segregated accounts companies - others XXX

XXX(d) Deposit Assets XXX

XXX(e) ________ XXX XXX(f) Total sundry assets XXX

14. LETTERS OF CREDIT, GUARANTEES ANDOTHER INSTRUMENTS

(a) Letters of credit XXX XXX(b) Guarantees XXX XXX(c) Other instruments XXX XXX(d) Total letters of credit, guarantees and otherinstruments XXX XXX

15. TOTAL XXX XXX

LONG-TERM BUSINESS INSURANCE RESERVES, OTHERLIABILITIES AND STATUTORY CAPITAL AND SURPLUS

STMT.LINE No. 20XX 20XX LONG-TERM BUSINESS

INSURANCE RESERVES

20. RESERVES FOR REPORTED CLAIMS XXX XXX

16


21. RESERVES FOR UNREPORTED CLAIMS XXX XXX 22. POLICY RESERVES — LIFE XXX XXX 23. POLICY RESERVES — ACCIDENT AND HEALTH XXX XXX 24. POLICYHOLDERS’ FUNDS ON DEPOSIT XXX XXX 25. LIABILITY FOR FUTURE POLICYHOLDERS’

DIVIDENDS XXX XXX 26. OTHER INSURANCE RESERVES — LONG-TERM XXX XXX 27. TOTAL LONG-TERM BUSINESS INSURANCE

RESERVES: XXX XXX

(a) Gross long-term business insurance reserves XXX XXX(b) Less: Reinsurance recoverable balance:(i) Foreign affiliates XXX XXX(ii) Domestic affiliates XXX XXX(iii) Pools & associations XXX XXX(iv) All other insurers XXX XXX(c) Total reinsurance recoverable balance XXX XXX(d) Net long-term business insurance reserves XXX XXXOTHER LIABILITIES

28. INSURANCE AND REINSURANCE BALANCES

PAYABLE XXX XXX 29. COMMISSIONS, EXPENSES, FEES AND TAXES

PAYABLE XXX XXX 30. LOANS AND NOTES PAYABLE XXX XXX 31. (a) INCOME TAXES PAYABLE XXX XXX

(b) DEFERRED INCOME TAXES XXX XXX 32. AMOUNTS DUE TO AFFILIATES XXX XXX 33. ACCOUNTS PAYABLE AND ACCRUED

LIABILITIES XXX XXX

17


34. FUNDS HELD UNDER REINSURANCECONTRACTS:(a) Affiliated XXX XXX(b) Non-affiliated XXX XXX(c) Total funds held under reinsurance contracts XXX XXX

35. DIVIDENDS PAYABLE XXX XXX 36. SUNDRY LIABILITIES:

(a) Derivative instruments XXX XXX(b) Segregated accounts companies XXX XXX(c) Deposit liabilities XXX XXX(d) ___________ XXX XXX(e) Total sundry liabilities XXX XXX

37. LETTERS OF CREDIT, GUARANTEES AND

OTHER INSTRUMENTS

(a) Letters of credit XXX XXX(b) Guarantees XXX XXX(c) Other instruments XXX XXX(d) Total letters of credit, guarantees and otherinstruments XXX XXX

38. TOTAL OTHER LIABILITIES XXX XXX 39. TOTAL LONG-TERM BUSINESS INSURANCE

RESERVES AND OTHER LIABILITIES XXX XXX

STATUTORY CAPITAL AND SURPLUS 40. TOTAL STATUTORY CAPITAL AND SURPLUS XXX XXX 41. TOTAL XXX XXX

Form 5

STATUTORY STATEMENT OF INCOME (Long-term Business)




18


STMT.LINE No. 20XX 20XX 19. GROSS PREMIUMS AND OTHER

CONSIDERATIONS:

(a) Direct gross premiums and otherconsiderations XXX XXX(b) Assumed gross premiums and otherconsiderations XXX XXX(c) Total gross premiums and otherconsiderations XXX XXX

(d) REINSURANCE PREMIUMS CEDED XXX XXX(e) NET PREMIUMS AND OTHERCONSIDERATIONS:(i) Life XXX XXX(ii) Annuities XXX XXX(iii) Accident and Health XXX XXX(iv) Total Net Premiums and Other Considerations XXX XXX

20. LONG-TERM BUSINESS INVESTMENT INCOME

— NET XXX XXX 21. OTHER INSURANCE INCOME XXX XXX 22. XXX XXX DEDUCTIONS 23. Claims — Life XXX XXX 24. Policyholders’ Dividends XXX XXX 25. Surrenders XXX XXX 26. Maturities XXX XXX 27. Annuities XXX XXX 28. Accident and Health Benefits XXX XXX

19


29. Commissions XXX XXX 30. Other XXX XXX 31. XXX XXX 32. OPERATING EXPENSES XXX XXX 33. XXX XXX 34. INCREASE (DECREASE) IN POLICY RESERVES

(Actuarial Liabilities): (a) Life XXX XXX (b) Annuities XXX XXX (c) Accident and Health XXX XXX (d) Total (Increase) Decrease in policy reserves XXX XXX 35. INCOME BEFORE THE UNDERNOTED ITEMS XXX XXX 37. OTHER INCOME (DEDUCTIONS) XXX XXX 38. INCOME BEFORE TAXES XXX XXX 39. INCOME TAXES (IF APPLICABLE): (a) Current XXX XXX (b) Deferred XXX XXX (c) Total XXX XXX 40. INCOME BEFORE REALIZED GAINS (LOSSES) 41. REALIZED GAINS (LOSSES) XXX XXX 42. NET INCOME XXX XXX


20



Form 8

STATUTORY STATEMENT OF CAPITAL AND SURPLUS




STMT.LINE No. 20XX 20XX 1. STATUTORY CAPITAL: (a) Capital Stock

(i) Common Shares: authorized shares of par value each issued and fully paid shares XXX XXX(ii) Preferred Shares: authorized shares of par value each issued and fully paid sharesaggregate liquidation value for:20xx XXX XXX XXX20xx XXX XXX XXX(iii) Treasury shares Repurchased shares of parvalue each issued and fully paid XXX XXX

(b) Contributed surplus XXX XXX(c) Any other fixed capital

(i) Hybrid capital instruments XXX XXX(ii) Guarantees and others XXX XXX(iii) Total any other fixed capital XXX XXX

(d) Total Statutory Capital XXX XXX 2. STATUTORY SURPLUS: (a) Statutory Surplus — Beginning of Year XXX XXX(b) Add: Income for the year XXX XXX(c) Less: Dividends paid and payable XXX XXX(d) Add (Deduct) change in unrealized appreciation

(depreciation) of investments XXX XXX(e) Add (Deduct) change in non-admitted assets XXX XXX(f) Add (Deduct) change in appraisal of real estate XXX XXX

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(g) Add (Deduct) change in any other statutorysurplus XXX XXX

(h) Statutory Surplus — End of Year XXX XXX 3. TOTAL STATUTORY CAPITAL AND SURPLUS XXX XXX

[Schedule 1 amended by BR 29/1989 effective 7th July 1989; Form 1A and Form 2A inserted and Form6 and Form 7 amended by BR 1/2009 reg.8 effective 31 December 2008; Schedule 1 amended by BR24 / 2010 reg.3 effective 31 December 2009; amended by BR 93 / 2010 reg.6 effective 31 December2010; amended and Forms 4, 5, 6, 7 and 8 deleted and substituted by 2011 : 44 Sch. 1 effective 31December 2011; Form 8 repealed and replaced by 2012 : 36 s. 21 effective 1 January 2013; Forms 4, 5,6 and 7 amended by 2013 : 46 Sch. I effective 1 January 2014; Forms 1 and 2 revoked and Forms 1A,2A, 5 and 7 amended by 2015 : 50 s. 15 effective 1 January 2016; Forms 5 and 7 amended by 2016 :35 s. 17 effective 21 July 2016; Forms 3, 6 and 7 revoked by BR 41 / 2017 reg. 7 effective 22 April 2017;Forms 1A and 2A amended by 2018 : 35 Sch & s. 22 effective 23 July 2018]

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SCHEDULE II

(Reg. 8)

NOTES TO STATUTORY FINANCIAL STATEMENTS

PART I

1 The name of the person or persons ultimately having power (whetherdirectly or through having control of some other person or persons whodirectly or indirectly control the insurer) to control the insurer and,where the persons having that ultimate power are a body corporate,the place of incorporation of that body corporate.

2 The general nature of the risks underwritten by the insurer.3 The insurer’s significant accounting policies, the nature of any change

made during the relevant year in those policies and the effect, ifdeterminable, of that change on the statutory financial statements.

4 The basis of recognition of premium, investment and commissionincome.

5 The method used to translate amounts denominated in currenciesother than the currency of the statutory financial statements, theamounts, if material, gained or lost on such translation and themanner in which those gains or losses are treated in those statements.

6 Any foreign exchange control restrictions affecting assets of theinsurer, with particular reference to money balances which cannot betransferred to the insurer because of reasons that are not insurancereasons.

7 Any contingencies or commitments calling for special mention (forexample, a commitment involving an obligation requiring abnormalexpenditure, or the conclusion of a long lease).

8 Any default made by the insurer in relation to the principal, interest,sinking fund or redemption provisions of any securities issue made, orany credit agreement entered into, by it.

9 The gross amount of arrears of dividends on preferred cumulativeshares, and the date to which those dividends were last paid.

10 The amount of any loan made during the relevant year by the insurer,to any director or officer of the insurer, not being a loan made in theordinary course of business.

11 The amount of any obligation in respect of retirement benefits relatingto employees of the insurer arising from service prior to the end of therelevant year remaining to be charged against operations, and thebasis on which the insurer proposes to charge that amount.

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12 Any transaction made or other event occurring between the end of therelevant year and the date of the auditor’s report and materiallyaffecting the statutory financial statements, not being a transactionmade or an event occurring in the ordinary course of business.

13 Any other information which in the opinion of the directors is requiredto be disclosed if the statutory financial statements are not to bemisleading.

PART II[Part II revoked by 2015 : 50 s. 15 effective 1 January 2016]

PART III[Part III revoked by 2016 : 35 s. 17 effective 21 July 2016]

PART IV

Matters to be set forth in Notes to theStatutory Statement of Capital and Surplus

Information required to be given

[Note: The numerals in bold type and letters in bold type in parentheses refer to the numbersof the line of the statutory statement of capital and surplus]

Capital stock

As respects authorized capital stock there shall be disclosed severally—

the number of common shares and preferred shares of each class, the parvalue, if any, of each class and a brief description of each class;

the dividend rates applicable to any preference shares, and whether thedividends are cumulative, including the liquidation values of thepreference shares;

the redemption price of any redeemable shares;

any conversion provisions.

As respects issued capital stock there shall be disclosed severally—

the number of shares in, and the capital stock amounts for, each class ofcommon and preferred shares;

the amounts called and unpaid or otherwise due in respect of those shares;

the amounts not called on those shares that will become receivable in duecourse when called.

As respects issued capital stock there shall be disclosed severally—

the number of shares repurchased, and the capital stock amounts for, eachclass of common and preferred shares;

1(a)

(a)

(b)

(c)

(d)

(a)

(b)

(c)

(a)

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Contributed surplus

The nature of any change in contributed surplus during the relevant year.

Any other fixed capital

The nature, terms and conditions comprising any other fixed capital approvedby the Authority, including any material change during the relevant year.

Dividends paid and payable

The amount and nature of any dividend paid during the relevant year.

B. There shall also be disclosed in notes the following information—

details of any change in the authorized capital stock of the insurer duringthe relevant year;

where an insurer has contracted to issue or re-issue shares or has givenoptions to purchase shares, the class and number of shares affected, theprice and date of the issue or re-issue of the shares or the exercise of theoptions and (shown separately) the total number of shares in respect ofwhich options are held by directors and officers of the insurer;

details of any share transactions during the relevant year including—

the number of shares of each class issued since the date of the laststatutory balance sheet, giving the value attributed thereto anddistinguishing—

shares issued for cash (showing separately shares issuedpursuant to options or warrants);

shares issued directly or indirectly for services; and

shares issued directly or indirectly for other considerations;

the number of shares of each class redeemed since the date of the laststatutory balance sheet and the consideration given and, where theconsideration was other than cash, the nature of the considerationgiven and the value attributed thereto.

PART V

(Reg 8(2)))

Matters to be set forth in Notes to the Statutory Statement of Income - Class 1, Class2, Class 3, Class A, Class B, section 24(6) composite, and innovative insurer

1(b)

1(c)

2(c)

(a)

(b)

(c)

(i)

(aa)

(bb)

(cc)

(ii)

25


Line of statutory balance sheet Information required to be given

1. Cash and time deposits Any encumbrance on cash or timedeposits must be disclosed. Examples of such encumbrancesare: irrevocable letters of credit;amounts held for security or ascollateral against a liability of theinsurer or an affiliate; any otheruse restriction such that the fundsin question are held in escrow or ina custodial account.

2. Quoted investments The method of valuation of quotedinvestment must be described. Anyencumbrance on quotedinvestments must be disclosed. Examples of such encumbrancesare: irrevocable letters of credit;amounts held for security or ascollateral against a liability of theinsurer or an affiliate.

3. Unquoted investments The method of valuation of anyunquoted investment must bedescribed. Any encumbrance onunquoted investments must bedisclosed. Examples of suchencumbrances are: irrevocableletters of credit; amounts held forsecurity or as collateral against aliability of the insurer or anaffiliate.

4. Investment in and advances to affiliates The method of valuation must bedescribed.

Repayment terms and the rates of

interest applicable to advancesmust also be given.

5. Investments in mortgage loans on realestate

The range of interest rates and therange of maturity dates formortgage loans on real estate mustbe disclosed.

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7. Real estate As regards real estate -(a) (i) the method of valuation; and (ii) where there areencumbrances, the value of thereal estate before encumbrances,the amount and nature of theencumbrances and the repayingterms and interest rates applicableto the encumbrances,shall be disclosed;(b) where an independentappraisal has been made, realestate may be valued at theappraisal value net of the amountof any encumbrances. In such acase, full details of the appraisal(including the date of the appraisal,the name of the appraiser, thebasis of valuation and thedisposition of any amounts addedto or deducted from the book value)shall be disclosed;(c) where other properties (ieproperties not occupied by theinsurer) are included in thestatutory balance sheet, the natureof the investments represented bythose properties (for examplewhether held for investmentreturn, or as a result of default ofmortgage, or for speculative gain)shall be disclosed.

8. Collateral loans Description and amount of thecollateral loans.

10. Accounts and premiums receivable The following must be disclosed in

a note:(a) Details of collateralizedbalances. (b) The amount of the receivablebalance with affiliates.

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11. Reinsurance balances receivable The following must be disclosed ina note-

(a) The name of the persongranting the letter of credit and thename of the person in whose favourthe letter of credit was granted.

(b) The amount of the letter ofcredit.

(c) The purpose for which the letterof credit was granted.

12. Funds held by ceding reinsurers The amount held by affiliates shallbe disclosed.

13. Sundry assets (a) The nature and terms of theseassets.

(b) For derivatives and embeddedderivatives, if any, thefollowing must be disclosed—

(i) a description of the policiessurrounding the use ofderivatives; and

(ii) market value and nominalexposure of each derivativeby issuer with nominalexposure greater than 5%of the aggregate sum of thetotal quoted and unquotedinvestments. Disclosureshould be separatedbetween long and shortpositions.

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14. Letters of credit, guarantees and otherinstruments

The following must be disclosed ina note -(a) the name of the persongranting the letter of credit,guarantee or other instrument, andthe name of the person in whosefavour the letter of credit,guarantee or other instrument wasgranted;(b) the amount of the letter ofcredit, guarantee or otherinstrument;(c) the purpose for which theletter of credit, guarantee or otherinstrument was granted.

16. Unearned premiums The method of calculatingunearned premiums.

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17. Loss and loss expense provisions The following must be disclosed in anote-

(a) Movements in the loss and lossexpense provisions for the currentyear and previous year as per the tablebelow.

(b) Reasons for the change in the netlosses incurred and net loss expensesincurred related to prior years andindicate whether additional premiumsor return premiums have beenaccrued as a result of the prior yeareffects.

(c) For the loss and loss expenseprovisions the following must bedisclosed, if any—

(i) total restricted assets - anamount equal to the valueof all that are held forsecurity or collateralagainst a liability orcontingent liability; and

(ii) unsecured policyholderobligations - an amountequal to all policyholderobligations that are notsecured by assets orcollateral.

(d) Loss provisions may be discountedin any of the following cases, that is tosay—

(i) where both the amount ofthe loss provisions andthe payment dates of thelosses are fixed;

(ii) where neither the amountof the loss provisions northe payment dates of thelosses are fixed but theinsurer’s approved

30



auditor is of the opinionthat that amount andthose dates arereasonably ascertainableeither in the records of theinsurer itself or in those ofany group of companies ofwhich the insurer is amember;

(iii) where the loss provisionsin question werediscounted on or before31st December 1988 inthe insurer’s statutoryfinancial statements;

(e) Where loss provisions arediscounted as allowed by paragraph(d) above, the directors of the insurershall determine that an adequateamount has been set aside by theinsurer for possible variations in theultimate amount of the losses, thepayment dates of the losses, and theapplicable interest rates;

(f) Where an insurer’s loss provisionshave been discounted as allowed byparagraphs (d) and (e) above but theinsurer has not met its generalbusiness solvency margin on anundiscounted basis, the opinion of aloss reserve specialist shall be givenon the loss and loss expenseprovisions;

(g) Where the gross premiums fromprofessional liability insuranceconstitute more than 30% of the grosspremiums written by the insurerduring the relevant year, then theopinion of a loss reserve specialistmust be given on the loss and lossexpense provisions relating to allprofessional liability insurancebusiness; but if the loss provisions

31



cannot be so separated then theopinion of the loss reserve specialistmust be given on the whole amount ofthe loss provisions;

(h) Where, in relation to an insurer nolonger effecting contracts ofprofessional liability insurance, theopinion of a loss reserve specialist asto the matters described in paragraph(g) was required in either of the lasttwo years during which it did effectcontracts of professional liabilityinsurance, then such an opinion mustbe given in every subsequent year.Other insurance reserves—generalbusiness.

Table (Line 17(a))

20XX 20XXGross loss and loss expense provisions at beginning of year XXX XXXLess : Reinsurance recoverable at beginning of year (XXX) (XXX)Net loss and loss expense provisions at beginning of year XXX XXX

Current year XXX XXXPrior years XXX XXX

Total net incurred losses and loss expenses XXX XXXNet losses and loss expenses paid or payable related to: XXX XXX

Current year XXX XXXPrior years XXX XXX

Total losses and loss expenses paid or payable Foreign exchange and other XXX XXXNet loss and loss expense provisions at end of year XXX XXXAdd: Reinsurance recoverable at end of year XXX XXXGross loss and loss expense provisions at end of year XXX XXXFor the long-term business insurance reserves the following mustbe disclosed, if any—

(a) Total restricted assets - an amount equal to the valueof all assets that are held for security or collateralagainst a liability or contingent liability; and

(b) Unsecured policyholder obligations - an amount equalto all policyholder obligations that are not secured byassets or collateral

20. Reserves for report claims

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21. Reserves for unreported claims 22. Policy reserves - life 23. Policy reserves accident and health

25. Liability for future policyholders’dividends

26. Other insurance reserves - long term

28. Insurance and reinsurance balancespayable

The payable balance to affiliates shall bedisclosed.

30. Loans and notes payable The repayment terms, rates of interest

and the nature of collateral given, if any.

31 (a) Income taxes payable

(b) Deferred income taxes Details of the deferred income tax

provision.

32. Amounts due to affiliates The repayment terms, rates of interest

and the nature of collateral given, if any.

34. Funds held under reinsurancecontracts

The amount held by affiliates shall bedisclosed.

36. Sundry liabilities (a) The nature of these liabilities and therepayment terms;

(b) For derivatives and embeddedderivatives, if any, the followingmust be disclosed—

(i) a description of the policiessurrounding the use ofderivatives; and

(ii) market value and nominalexposure of each derivative byissuer with nominal exposuregreater than 5% of the aggregatesum of the total quoted andunquoted investments.Disclosure should be separatedbetween long and shortpositions.

33


37. Letters of credit, guarantees and otherinstruments

(a) the name of the person grantingthe letter of credit, guarantee or otherinstrument, and the name of the personin whose favour the letter of credit,guarantee or other instrument wasgranted;(b) the amount of the letter of credit,guarantee or other instrument;(c) the purpose for which the letterof credit, guarantee or other instrumentwas granted.

(Reg 8(2))

Part VI

Matters to be set forth in Notes to the Statutory Statement of Income - Class 1, Class2, Class 3, Class A, Class B, section 24(6) composite, and innovative insurer

Line of statutory statement of income

Information required to be given

6. Other insurance income 12. Other underwriting income

37. Other income (deductions)

The nature of material items that have beenincluded. The nature of material items that have beenincluded. The nature of material items that have beenincluded.

41. Realized gains (losses) The nature of material items that have beenincluded.

[Schedule II amended by BR 29/1989 effective 7th July 1989; Parts V and VI inserted by BR 1/2009reg.9 effective 31 December 2008; Schedule II amended by BR 24 / 2010 reg. 4 effective 31 December2009; amended by BR 93 / 2010 reg.7 effective 31 December 2010; amended by 2011 : 44 Sch. 1 effective31 December 2011; Part II amended, and Part IV repealed and replaced by 2012 : 36 s. 21 effective 1January 2013; Parts I and II revoked and Parts V and VI amended by 2015 : 50 s. 15 effective 1 January2016; Part I inserted and Part III revoked by 2016 : 35 s. 17 effective 21 July 2016; Parts IV and Vamended by BR 41 / 2017 reg. 8 effective 22 April 2017; Parts V and VI amended by 2018 : 35 Sch &s. 22 effective 23 July 2018; Schedule II Parts V and VI amended by 2019 : 51 s. 4(1) effective 30 April2020]

34


SCHEDULE III

(Reg. 9(2))

INSTRUCTIONS AFFECTING THE STATUTORY BALANCE SHEET

PART I[Part I revoked by 2015 : 50 s. 15 effective 1 January 2016]


PART III

Additional instructions for insurers carrying onlong-term business only

Instructions

[Note: The numerals in bold type refer to the numbers of the line of statutory balance sheet]

Policy loans

These shall be carried at an amount that is the aggregate of the unpaidbalances on policy loans and any unpaid interest, so, however, that, for eachloan, that amount shall not exceed the cash surrender value of the policy orthe applicable policy reserve.

Reserves for reported claims

This line shall disclose an adequate amount set aside by the insurer to meetclaims unpaid at the end of the relevant year and made under contracts ofinsurance and reinsurance in respect of incidents occurring and reported tothe insurer before the end of that year.

The said amount shall be reduced by any amount recoverable under a contractof reinsurance in respect of the gross amount provided for. The directors shallmake allowance for any such amount as is last-mentioned the collection ofwhich is in their opinion doubtful and adjust the reserve by said amount.

Reserves for unreported claims

This line shall disclose an adequate amount set aside by the insurer to meetclaims under contracts of insurance and reinsurance in respect of incidentsoccurring, but not reported to the insurer, before the end of the relevant year.The said amount shall be reduced by any amount recoverable under a contractof reinsurance in respect of the gross amount provided for. The directors shallmake allowance for any such amount as is last-mentioned the collection ofwhich is in their opinion doubtful and adjust the reserve by said amount.

Policy reserves—life

6.

20.

21.

22.

35


These shall be an amount, actuarially computed, which is considered adequateto provide future guaranteed benefits as they become payable under theprovisions of life insurance policies in force. Amounts applicable to other lifecontract benefits (such as disability waiver of premium, disability incomebenefits and additional accidental death benefits) and to annuities and tosupplemental contracts with life contingencies may also be included.

The said amount—

shall not include reserves in respect of accident and health policies; and

shall be reduced by the amount of reserves ceded under reinsurancecontracts.

The directors shall make allowance for any amount the collection of which isin their opinion doubtful and adjust the reserve by said amount.

Policy reserves—accident & health

These reserves shall be an amount, actuarially computed, which are consideredadequate, and shall consist of—

an active life reserve, that is to say, that portion of due and collectedpremiums which has been set aside to be recognized as earned in thefuture consisting of—

the unearned portion of the current premium;

additional reserves, that is to say, the reserves applicable to policieswhich provide for the payment of uniform rate premiums in respect ofa risk the cost of which increases with the age of the insured;

reserves for rate credits;

a claims reserve, that is to say, the present value of amounts not yet dueon claims,

provision for future contingent benefits being included in both cases.

The said reserves shall not include the amount of any reserves ceded underreinsurance. The directors shall make allowance for any such amount thecollection of which is in their opinion doubtful and adjust the reserve by saidamount.

Policyholders’ funds on deposit

These funds shall consist of premiums paid in advance of the due date, whetheror not interest is paid for early payment. These liabilities shall be valued at theamounts received by the insurer, plus any interest credited.

Liability for future policy-holders’ dividends

(a)

(b)

23.

(a)

(i)

(ii)

(iii)

(b)

24.

25.

36


This shall be the amount of dividends payable, as declared by the directors, onparticipating life policies which qualify for such dividends, and shall berecorded at the amount declared.

Other insurance reserves—long-term business

These shall consist of any other reserves required by the terms of life or accidentand health contracts or as a result of special riders or options attaching to anysuch contracts, not being reserves provided for in lines 22 to 25 inclusive of thestatutory balance sheet.

These must be actuarially determined and be considered adequate.

Gross long-term business insurance reserves

This line shall disclose the gross amount of reserves under contract ofreinsurance in respect of the gross amount provided for. There shall bedisclosed severally—

Total gross long-term business insurance reserves: Total lines 20 through26 before the said amounts are reduced by any amount recoverable undera contract of reinsurance in respect of the gross amount provided for;

Less: Reinsurance recoverable balance on long-term business:

Foreign affiliates reinsurance recoverable balance;

Domestic affiliates reinsurance recoverable balance;

Pools and associations;

All other insurers;

Total reinsurance recoverable balance; the total of (i) through (iv); and

Total net long-term business insurance reserves: The total of lines 20 to 26inclusive, or the amount arrived at by subtracting line 27(c) from 27(a).

Part IV

(Reg 9(2))

INSTRUCTIONS AFFECTING THE STATUTORY BALANCE SHEETClass 1, Class 2, Class 3, Class A, Class B, section 24(6) composite, and innovative

insurer

Line of statutory balance sheet Instructions

1. Cash and time deposits

Certificates of deposit shall beincluded.

26.

27.

(a)

(b)

(i)

(ii)

(iii)

(iv)

(c)

(d)

37



2. Quoted investments

(a) there shall be disclosed

severally -(i) bonds and debentures (held

to maturity and other);(ii) equities (common stocks,

preferred stocks, andmutual funds);

(iii) other quoted investments;(iv) the total of (i), (ii) and (iii);(b) held to maturity bonds and

debentures shall be atcost or amortized cost,and adequate provisionshall be made for anypermanent diminutionin value;

(c) other bonds and debentureshall be carried at theirquoted value;

(d) equities (common stocks,preferred stocks, andmutual funds) shall becarried at their quotedvalue;

(e) other quoted investmentsshall be carried at theirquoted value.

3. Unquoted investments

(a) there shall be disclosedseverally—(i) bonds and debentures (heldto maturity and other);(ii) equities (common stocks,preferred stocks and mutualfunds);(iii) the total of (i) and (ii);

38



(b) held to maturity bonds anddebentures shall be carried eitherat cost or amortized cost andadequate provision shall be madefor any permanent diminution invalue;(c) other bonds and debentures atfair value determined in good faith;(d) equities (common stocks,preferred stocks, and mutualfunds) shall be carried at fair valuedetermined in good faith.

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4. Investment in and advances to

affiliates (Equity Methods)

(a) there shall be disclosedseverally—(i) Unregulated entities thatconduct ancillary services(ii) Unregulated non-financialoperating entities(iii) Unregulated financialoperating entities(iv) Regulated non-insurancefinancial operating entities(v) Regulated insurancefinancial operating entities(vi) Total investments inaffiliates (equity method)(vii) Advances to affiliates(viii) Total investments in andadvances to affiliates (equitymethod)(b) amounts receivable orpayable on account of policiesof insurance or reinsurancewith affiliates shall not beincluded. Such amountsshall be included in accountsand premiums receivable (line10) and reinsurance balancespayable (line 28), respectively; (c) funds held by cedingreinsurers which are affiliates(line 12) and funds held underreinsurance contracts withaffiliates (line 34) shall not beincluded;(d) investments in affiliatesshall be valued either by thecost method of valuation orthe equity method ofvaluation:Provided that -(i) if the value arrived at bythe use of the equity methodof valuation is less than thevalue arrived at by the costmethod of valuation, the value

40



arrived at by the equitymethod shall be used;

(ii) the directors shall carrythe said investments at a fairvalue determined in good faithif that value is less than thevaluations under the costmethod and the equitymethod of valuation;(e) advances to affiliates shallbe carry at fair valuedetermined in good faith;(f) if any amount is in theopinion of the directorsuncollectible, that amountshall be deducted.

5. Investment in mortgage loans on

real estate

Mortgages shall be carried at thevalue of the principal amountoutstanding less any provisionconsidered by the directors to beneeded for doubtful collection, andthere shall be disclosed severally -(a) first liens;(b) liens other than first liens; and(c) the total of (a) and (b).

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7. Real estate

(a) both land andbuildings shall be included; (b) the insurer’s titlemust be clear andincontestable; (c) there shall bedisclosed severally -(i) real estate occupied by thecompany (lessencumbrances);(ii) other properties (lessencumbrances);(iii) the total of (i) and (ii); (d) except where carriedat a value determined by anindependent appraisal net ofencumbrances, real estateshall be carried at the lower of-(i) cost less accumulateddepreciation; and(ii) fair value determined ingood faith,

less the amount of anyencumbrances;(e) where an independent appraisalhas been made, real estate may bevalued at the appraisal value net ofthe amount of any encumbrances.

8. Collateral loans If any amount is in the opinion ofthe directors uncollectible, thatamount shall be deducted.

9. Investment income due andaccrued

If any amount is in the opinion ofthe directors uncollectible, thatamount shall be deducted.

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10. Accounts and premiumsreceivable

(a) there shall be disclosedseverally -(i) in course of collection; (ii) deferred – not yet due; (iii) receivables fromretrocessional contracts (iv) the total of (i) to (iii); (b) amounts receivable on account ofpolicies of insurance from anyperson, whether an affiliate or not,shall be included;(c) amounts due from reinsurers andfunds held by ceding reinsurers(being amounts or funds which havebeen included in lines 11 and 12)shall not be included;(d) if any amount is in the opinion ofthe directors uncollectible, thatamount shall be deducted.

11. Reinsurance balances receivable

(a) there shall be disclosedseverally - (i) foreign affiliates; (ii) domestic affiliates; (iii) pools & associations; (iv) all other insurers; (v) the total of (i) to (iv); (b) amounts receivable on account ofpolicies of reinsurance from anyperson, whether an affiliate or not,shall be included;(c) any amount shown in line 10 or 12shall not be included;(d) if any amount is in the opinion ofthe directors uncollectible, thatamount shall be deducted.

43



12. Funds held by ceding reinsurers

(a) there shall be disclosedseverally -(i) affiliated; (ii) non-affiliated; (iii) the total of (i) and (ii);(b) funds held by ceding reinsurers(whether affiliates or not) shall beincluded;

(c) any amount shown in line 10 or 11shall not be included;(d) if any amount is in the opinion ofthe directors uncollectible, thatamount shall be deducted.

13. Sundry assets Any asset not accounted for in lines1 to 12 and 14 may be includedhere if it has a readily realisablevalue. Any other assets, prepaidand deferred expenses, goodwilland similar intangible assets,deferred acquisition costs, excessof book value over admitted assetvalue of stocks, and otherinvestments shall be non-admittedassets.

44



14. Letters of credit, guarantees and

other instruments

15. Total

(a) where additional fixed capital has

been secured to the insurer by means

of an irrevocable letter of credit, a

guarantee or any other instrument,

an asset may, with the approval of

the Authority obtained on an

application made for that purpose, be

recorded and the capital increased by

a corresponding amount. Where

such an asset is recorded, it must be

shown net of any allowance for its

collectibility;

(b) letters of credit, guarantees or

other instruments in favour of the

insurer which relate to insurance

operations shall not be recorded.

This shall be the total of lines 1 to 14

inclusive.

16. Unearned premiums (a) this line shall disclose anadequate amount set aside forunearned premiums, which shall beshown net of the unearned portion ofthe reinsurance premiums cededwhich are used for calculating netpremiums written;

45



(b) where refunds are expected to bemade under retrospective orexperience rating plans, adequateprovision must be made by anappropriate addition to the unearnedpremiums reserve;(c) acquisition costs shall not bededucted in calculating the amountof unearned premiums;

17. Loss and loss expenseprovisions

(a) this line shall disclose anadequate amount set aside by aninsurer to meet losses reportedbefore, but not paid by, the last dayof the relevant year, in respect ofincidents occurring before thatday, and to meet expenses likely tobe incurred in connection with theinvestigation, adjustment andsettlement of such losses. The saidprovisions shall include amountsin respect of losses reported. Thereshall be disclosed the adequateamount in respect of lossesincurred but not reported to theinsurer before the last day of therelevant year;

(b) the said amount shall not includeany amount recoverable under acontract of reinsurance in respect ofthe gross amount provided for. Thedirectors shall make allowance forany such amount as is last-mentioned, the collection of which isin their opinion doubtful, and theamount shall be shown net of anysuch provisions;

46



(c) there shall be disclosedseverally -(i) gross loss and loss expenseprovisions; (ii) foreign affiliates reinsurance recoverable balance; (iii) domestic affiliates reinsurance recoverable balance; (iv) pools & associations reinsurance recoverable balance; (v) all other insurers reinsurance recoverable balance;(vi) the total reinsurance recoverablebalance of (ii) to (v);(vii) net loss and loss expenseprovisions – the total of (i) and (vi).

18. Other insurance reserves -general business

The balance from the open yearbusiness revenue statement shallbe included.

19. Total general businessinsurance reserves

This shall be the total of lines 16,17 and 18.

28. Insurance and reinsurancebalances payable

(a) amounts, includingpremiums and other balances,payable to insured persons andreinsurers (whether affiliates ornot) under insurance andreinsurance contracts shall beincluded;

(b) funds held by the insurer underreinsurance contracts (shown on line34) shall not be included.

47



29. Commissions, expenses, feesand taxes payable

All liabilities in respect ofcommissions (including profitcommissions), underwritingexpenses, fees and taxes (otherthan income taxes) shall beincluded. Where the insurer isprimarily a reinsurer, the saidliabilities may be included in line28.

30. Loans and notes payable Loans and notes payable to anyperson other than an affiliate shallbe included here.

31. Income taxes There shall be disclosedseverally -

(a) income taxes currentlypayable;

(b) provision for deferred incometaxes.

32. Amounts due to affiliates (a) All balances due to affiliates, notbeing amounts payable underreinsurance contracts (shown on line28 or line 34), shall be included here.

33. Accounts payable and accruedliabilities

Any other (non-insurance)accounts payable and accruedliabilities shall be included here.

34. Funds held under reinsurancecontracts

(a) Funds held under reinsurancecontracts shall be includedhere.

(b) There shall be disclosedseverally—

(i) affiliated;

(ii) non-affiliated;

(ii) the total of (i) and (ii);

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35. Dividends payable The amount of dividends payable toshareholders in the insurerdeclared prior to the last day of therelevant year and remainingunpaid on that day shall beincluded here.

36. Sundry liabilities Any liabilities (includingprospective and contingentliabilities) not assigned to anotherline of the statutory balance sheetshall be included here.

37. Letters of credit, guaranteesand other instruments

(a) where letters of credit, guaranteesand other instruments are given bythe insurer in favour of anotherperson, being letters of credit,guarantees or other instruments notrelating to the insurer’s insuranceoperations and in effect encumberingthe insurer’s assets, a liability shallbe recorded and the statutory capitaland surplus decreased by acorresponding amount, whether theinsurer has pledged specific assets ornot under the letters of credit,guarantees or other instruments;(b) letters of credit, guarantees andany other instruments relating toinsurance operations shall not berecorded.

38. Total other liabilities This shall be the total of lines 28 to37 inclusive.

39. Total general business insurance reserves and otherliabilities

This shall be the total of lines 19and 38, or of lines 27 and 38, or oflines 19, 27 and 38 as the case mayrequire.

40. Total statutory capital andsurplus

This shall be the capital andsurplus total as at the end of therelevant year, as shown in thestatutory statement of capital andsurplus.

49



41. Total This shall be the total of lines 39and 40.

[Schedule III amended by BR 29/1989 effective 7th July 1989; by 1995:20 effective 29 April 1995; by2001:27 effective 1 October 2001; by BR 41/2005 effective 1 July 2005; by BR 1/2009 reg.10 effective31 December 2008; amended by BR 24 / 2010 reg. 5 effective 31 December 2009; amended by BR 93 /2010 reg.8 effective 31 December 2010; amended by 2011 : 44 Sch. 1 effective 31 December 2011; PartIII and Part IV amended by 2012 : 36 s. 21 effective 1 January 2013; Part III amended by 2013 : 46Sch.I effective 1 January 2014; Parts I and II revoked and Part IV amended by 2015 : 50 s. 15 effective1 January 2016; Part IV amended by 2018 : 35 Sch & s. 22 effective 23 July 2018; Part IV amended by2019 : 51 s. 4(1) effective 30 April 2020]

50


SCHEDULE IV

(Reg. 9(3))

INSTRUCTIONS AFFECTING THE STATUTORY STATEMENT OF INCOME

PART I[Part I revoked by 2015 : 50 s. 15 effective 1 January 2016]


PART III

Additional instructions for insurers carrying onlong-term business only

Instructions

[Note: The numerals in bold type refer to the numbers of the line of statutory statement ofincome

Gross premiums and other considerations

These shall be gross premiums and other considerations. The amount shall bedisclosed severally in the following categories—

direct gross premiums and other considerations;

assumed gross premiums and other considerations;

this shall be the total of 19(a) and 19(b);

19(c) shall be deducted by the total reinsurance ceded under contracts ofreinsurance during the relevant year, net of related taxes. The result willbe net premiums and considerations;

this income derived from 19(d) shall be disclosed severally in the followingcategories—

(i) life;

(ii) annuities;

(iii) accident and health; and

(iv) the total of (a) to (c) inclusive.

Long-term business investment income—net

This income may be shown net of with-holding tax and any other directlyrelated expenses, but shall not include realized gains or losses shown on line41 of the statutory statement of income.

19.

(a)

(b)

(c)

(d)

(e)

20.

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Other insurance income

This shall be the aggregate of all other income, such as commission andbrokerage income, directly related to underwriting long-term business.

This shall be the total of lines 19 to 21 inclusive.

Claims—life

This shall be the amount of claims incurred under life insurance policies (inrespect, for example, of death or disability) during the relevant year, but shallnot include claims ceded under reinsurance contracts.

Surrenders, maturities, annuities and accident and health benefits which aredisclosed in lines 25, 26, 27 or 28 shall not be included.

Policyholders’ dividends

These shall be amounts distributed or credited during the relevant year topolicyholders with participating life policies.

Surrenders

This shall be amounts incurred during the relevant year as a result of thesurrender by policyholders, either for cash or in exchange for some otherconsideration, of policies with cash surrender values.

Maturities

These shall be amounts incurred as a result of the maturing during the relevantyear, after a specified period of time, of any endowment policy before the deathof the insured.

Amounts paid as a result of the death of an insured that is covered by anendowment policy shall be included in line 23.

Annuities

These shall be amounts incurred during the relevant year under the terms ofany annuity contract.

Accident and health benefits

These shall be amounts incurred in respect of claims under accident and healthcontracts, being claims arising out of incidents occurring during the relevantyear.

Commissions

21.

22.

23.

24.

25.

26.

27.

28.

29.

52


These shall be the aggregate amounts of compensation paid or payable toagents or brokers in return for business procured by them for the insurer inthe relevant year in respect of long-term business.

Other

These shall include any expenses related to long-term business during therelevant year that are not included in any of lines 23 to 29 inclusive or in line32.

This shall be the total of lines 23 to 30 inclusive.

Operating expenses

These shall include the administrative and other general expenses of operatingthe insurer’s long-term business during the relevant year.

This shall be the gain (or loss) arrived at by deducting the aggregate of lines 31and 32 from the amount shown on line 22 (or vice versa).

Increase (decrease) in policy reserves

This shall be the increase or decrease from the end of the immediatelypreceding financial year in policy reserves—life (line 22 of the statutory balancesheet), policy reserves—accident and health (line 23 of the statutory balancesheet), and, if applicable, that portion of other insurance reserves—long-termbusiness (line 26 of the statutory balance sheet) which is actuariallydetermined. The increases (decreases) in the said policy reserves shall bedisclosed severally in the following categories—

life;

annuities;

accident and health;

the total of (a) to (c) inclusive.

Income before the undernoted items

This shall be the net total of lines 33 and 34.

(Reg 9(3))

Part IV

INSTRUCTIONS AFFECTING THE STATUTORY BALANCE SHEET

Class 1, Class 2, Class 3, Class A, Class B, section 24(6) composite, and innovativeinsurer

30.

31.

32.

33.

34.

(a)

(b)

(c)

(d)

35.

53


Line of statutory statement ofincome

Instructions

1. Gross premiums written This gross premiums written shall bedisclosed severally in the followingcategories -

(a) direct gross premiums written; (b) assumed gross premiums written;

(c) the total of (a) and (b) inclusive.These shall be the sum of directpremiums written and reinsurancepremiums assumed (net of returnpremiums in each case).Where reinsurance premiums arereported as a net amount (on either awritten or an earned basis), that amountmay, where further details are notavailable, be included as assumed grosspremiums written.

2. Reinsurance premiums ceded These shall be premiums (less returnpremiums) arising from any reinsurancecontract under which part of the liability ofthe insurer under direct policies orassumed reinsurance is transferred toreinsurers.

3. Net premiums written This shall be arrived at by subtracting line2 from line 1.

4. Increase (decrease) in unearnedpremiums

This shall be the net increase (decrease) inthe unearned premiums from the end of theimmediately preceding financial year.

5. Net premiums earned This shall be the aggregate of lines 3 and 4.

6. Other insurance income This shall be the aggregate of all otherincome (such as commission and brokerageincome) directly related to the underwritinggeneral business.

7. This shall be the total of lines 5 and 6.

54



Instructions

8. Net losses incurred and net lossexpenses incurred

These shall consist of net losses and netloss expenses actually paid during therelevant year plus (minus) the increase(decrease) in the reserve shown on line 17(d)of the statutory balance sheet over that ofthe immediately preceding financial year.

9. Commissions and brokerage This shall be the aggregate of compensationpaid or payable to agents or brokers inreturn for business procured by them forthe insurer in the relevant year in respect ofgeneral business.

10. General and administrative These shall be general and administrativeexpenses other than those described in line11.

11. Personnel costs These shall be the aggregate amount ofsalaries, wages and benefits, includingtaxes applicable to salaries and wages.

12. Other These shall be underwriting expenses notincluded in lines 10 and 11.

13. This shall be the total of lines 8 to 12inclusive.

14. Underwriting profit (loss) This shall be arrived at by subtracting line13 from line 7 (or vice versa).

17. General business investmentincome – net

Investment income may be shown net ofwith-holding tax and of any other directlyrelated expenses, but shall not includerealized gains or losses shown on line 41 ofthe statutory statement of income.

18. Income before the undernoteditems

This shall be the total of lines 16 and 17.

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Instructions

37. Other income (deductions) These shall consist of all income (deduction)items not assigned to any of the lines above. Income taxes (line 39) and realized gains(losses) (line 41) shall not be included.

38. Income before taxes This shall be the total of lines 37 and -(a) in the case of an insurer engaged in generalbusiness, line 18; (b) in the case of a section 24(6) composite, line36.

39. Income taxes The following shall, if applicable, be disclosedseverally -(a) the amount provided in respect of income taxescurrently payable;(b) the amount provided in respect of deferredincome taxes;(c) the total of (a) and (b).

40. Income before realized gains(losses)

This shall be the total of lines 38 and 39.

41. Realized gains (losses) This shall include gains or losses on the sale of -

(a) investments, whether quoted or unquoted;

(b) investments in affiliates; (c) investments in mortgage loans on real

estate; and (d) real estate,and may be net of the taxes and otherexpenses affecting any such sales.

42. Net income This shall be the total of lines 40 and 41.

[Schedule IV amended by BR 1 / 2009 reg.11 effective 31 December 2008; Schedule IV amended by BR93 / 2010 reg.9 effective 31 December 2010; amended by 2011 : 44 Sch. 1 effective 31 December 2011;Parts I and II revoked and Part IV amended by 2015 : 50 s. 15 effective 1 January 2016; Part IV amendedby 2018 : 35 Sch & s. 22 effective 23 July 2018; Part IV amended by 2019 : 51 s. 4(1) effective 30 April2020]

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SCHEDULE V

(Reg. 9(4))

INSTRUCTIONS AFFECTING THE STATUTORY STATEMENT OFCAPITAL AND SURPLUS

Instructions

[Note: The numerals in bold type and letters in bold type in parentheses refer to the numbersof the line of statutory statement of capital and surplus]

Capital stock

This shall comprise—

where common shares, preferred shares and treasury shares have a parvalue, the par value;

where common shares, preferred shares and treasury shares have no parvalue, the stated value, of shares issued and called.

Where shares have only been partially called, only the called portion shall beincluded.

Where any capital stock has been called but not received, a correspondingreceivable shall be reflected in the statutory balance sheet.

In this Schedule “stated value”, in relation to shares in an insurer, means thevalue attributed to the shares in the books of the insurer.

Contributed surplus


any share premium, that is to say—

where shares have a par value, the excess of any proceeds received orreceivable over the par value;

where shares have no par value, the excess of proceeds received orreceivable over the stated value,

of shares issued and called.

Where shares have only been partially called, only the said excess on thecalled portion shall be included;

any credit resulting from the redemption or conversion of any shares atless than the amounts set up in respect of those shares as capital stock;

any other capital contribution made to the insurer by any shareholder, notbeing a contribution required to be set up as capital stock.

1(a).

(a)

(b)

(b).

(a)

(i)

(ii)

(b)

(c)

57


Where any contributed surplus amount has been called but not received,a corresponding receivable shall be reflected in the statutory balance sheet.

Any other fixed capital

This shall comprise any other fixed capital approved by the Authority whichhas not been allocated to line 1(a). or 1(b). and must take into account anyamount required by the instruction in Part I of Schedule III relating to line 14or line 37 of the statutory balance sheet to be credited to, or, as the case maybe, charged against, capital—

Hybrid capital instruments

Guarantees and others

Total any other fixed capital - the sum of (i) and (ii).

Total statutory capital

This shall be the total of lines 1(a), 1(b) and 1(c).

Statutory surplus—beginning of year

Statutory surplus—beginning of the year means the statutory surplus as at theend of the immediately preceding financial year as computed in accordancewith these Regulations.

Income for the year

This shall be the amount described in line 42 of the statutory statement ofincome.

Dividends paid and payable


all dividends declared during the relevant year, being dividends payable toshareholders in the insurer during that year, whether those dividends wereor were not in fact so paid before the end of the relevant year;

any provision made for the payment during the relevant year of cumulativedividends in respect of shares of any class, being dividends due to havebeen paid before the commencement of the relevant year.

Change in unrealized appreciation (depreciation) of investments

This shall comprise any increase (decrease) occurring since the end of theimmediately preceding financial year in the value of quoted investments (line 2of the statutory balance sheet), to the extent that that increase (decrease) is notreflected in the statutory statement of income.

(c).

(i)

(ii)

(iii)

(d).

2(a).

(b).

(c).

(a)

(b)

(d).

58


Change in non-admitted assets

This shall comprise any (increase) or decrease occurring since the end of theimmediately preceding financial year in the value of non-admitted assets.

Change in appraisal of real estate

This shall comprise any increase (or decrease) occurring since the end of theimmediately preceding financial year in the value of real estate carried atappraisal value (see paragraph (B) of the requirement in Part II of Schedule IIrelating to line 7 of the statutory balance sheet).

Change in any other statutory surplus

This shall comprise any increase (or decrease) occurring since the end of theimmediately preceding financial year in the value of unquoted investments,investments in and advances to affiliates and investments in mortgage loanson real estate (lines 3, 4 and 5 respectively of the statutory balance sheet), tothe extent that that increase (decrease) is not reflected in the statutorystatement of income.

Statutory surplus—end of year

This shall be the aggregate of lines 2(a), 2(b), 2(c), 2(d), 2(e), 2(f) and 2(g).

Total statutory capital and surplus

This shall be the total of lines 1(d) and 2(h).

[Schedule V amended by BR 29/1989 effective 7th July 1989; amended by 2001:27 effective 1 October2001; amended by 2012 : 36 s. 21 effective 1 January 2013]

[Amended by:BR 38 / 1981BR 29 / 19891995 : 202001 : 27BR 41 / 2005BR 1 / 2009BR 24 / 2010BR 93 / 20102011 : 442012 : 362013 : 462015 : 50

(e).

(f).

(g).

(h).

3.

59


2016 : 35BR 41 / 20172018 : 352019 : 51]

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Insurance Accounts Regulations 1980 - Bermuda Laws Laws/Insurance... · 2020-05-03 · INSURANCE...

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Transcript of Insurance Accounts Regulations 1980 - Bermuda Laws Laws/Insurance... · 2020-05-03 · INSURANCE...